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Cryptocurrency and blockchain technology have opened up a new horizon for charity and public service. Crypto has the potential to solve the problems that traditional charities faced in collecting, distributing, and using money (such as lack of transparency, high administrative costs).

1. Benefits of Giving Through Cryptocurrency

The use of cryptocurrency makes the charitable process more efficient, transparent, and globally accessible. Blockchain acts as an immutable, public ledger. After donating, donors can easily track the movement of their money—where and how their donation is being used. This transparency ensures that charities are not misappropriating funds or using them for other inappropriate purposes, which increases donors’ trust and confidence in public service. Traditional charities often pay high fees to banks, payment processors, and fiat currency exchanges. Crypto transactions, especially when using stablecoins or L2 networks, dramatically reduce these fees. In emergencies such as war or natural disasters, cryptocurrency can help move money almost instantly to any location in the world, which can help local NGOs. Cryptocurrencies allow donations to be made anywhere in the world, without geographical boundaries or central bank approval. In countries where governments impose repressive economic controls, civil society or charities can safely receive funds through cryptocurrency. Charities can reach a new generation of donors and wealthy individuals by creating NFTs or partnering with crypto artists. Some charitable initiatives are now being formed as DAOs, where token holders can collectively vote on the use of funds, further decentralizing the decision-making process.

2. Challenges and Issues in Use

Despite the huge potential of crypto charity, its use still faces some challenges. The high price volatility of cryptocurrencies is a major risk. When a charity receives a donation, its value can suddenly drop significantly within a few days, which poses problems for their budget planning and long-term operations. To reduce this risk, many organizations quickly converted to stablecoins. There is confusion in different countries about whether cryptocurrencies are classified as assets, currencies, or something else. It can be complicated for charities to accept crypto donations and ensure their tax deduction. It is mandatory for charities to comply with laws related to money laundering (AML) and terrorism financing (KYC), which creates complications for accepting some anonymous crypto donations. Charitable organizations’ employees need to have a sound understanding of blockchain technology, wallet security, and transaction processes. Without the technical knowledge and infrastructure, accepting crypto donations can be difficult.

3. Future Directions

Cryptocurrencies and blockchain have the potential to revolutionize the charitable sector. For wider adoption, it is essential to reduce the complexities of the technology, create international legal clarity and develop risk management strategies within organizations. This certainly ushers in a smart, transparent and decentralized model for public service. Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.

Me behind the camera & keyboard

I’ve always loved sharing my passions with you — from crypto and movie reviews to photography, storytelling, and blogging. Now, continuing that creative journey, I’ve stepped into a brand-new world — Gaming ! 🎮 | 🎥 On my YouTube channel Bokhtiar The Survivor — I’m consistently working to bring you the raw thrill of my gaming experiences — the emotions, the excitement, and those unforgettable moments that make every game feel alive.